Ministry of Commerce: Situations “Not That Bad”

China had attracted 9.23 billion dollars in foreign direct investment in May, the first year-on-year increase after declining for six straight months.

China’s economic situations are “not that bad” based on new data released today, a spokesman with the Ministry of Commerce said in response to a reporter’s quest to comment on recent reports that the state-owned companies have to be prepared for a period of downturn which may last for three to five years.

“Judging from a set of figures in export and business arena, the [current] situation should not be that bad,” said Shen Danyang, adding that no matter how it changes, Chinese government would be able to deal with it.

“After all, we have handled Asia’s financial crisis and the global financial crisis a few years ago…..[we] believe the future is still promising,” the spokesman said.

At the news conference today, Shen said China had attracted 9.23 billion dollars in foreign direct investment in May, the first year-on-year increase after declining for six straight months.

Outbound investments in the first five months amounted to 28.5 billion U.S. dollars, and 39.3 percent of them were invested through acquisition, Shen said.

China’s state assets regulator warned last week that the country’s state-owned companies (SOEs) had to be prepared for a period of downturn as the world’s second-largest economy may end its near-double digit growth that lasted for decades.

“The SOEs need to fully recognize the severity and urgency of current situation, and make timely preparations to weather the upcoming storms and winters which will last for three to five years,” said Shao Ning, deputy director of the State-owned Assets Supervision (SASAC), according to a statement published on the website.

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